Faraday Future Intelligent Electric Inc. (NASDAQ:FFIE) shares are racing higher Thursday. The stock is up more than 3000% over the past five days amid the recent meme stock rally.
What To Know:
Faraday Future shares opened for trading Monday at 4 cents per share, and the stock has climbed more than 3000% in the last 4 sessions.
Faraday Future appears to have benefited from the recent "meme stock" rally which saw heavily-shorted stocks gaining amid a retail-fueled rally in GameStop Corporation (NYSE:GME) and AMC Entertainment Holdings, Inc. (NYSE:AMC).
According to data from Benzinga Pro, a remarkable 85.71% of available shares are being sold short which can contribute to large price movements when combined with heavy trading volume. At the time of publication, more than 710.5 million Faraday Future shares had already been traded in Thursday's session.
Despite the recent stock performance, the company is facing financial challenges. Faraday Future received a delisting notice from Nasdaq on April 24 after its share prices remained below 10 cents for ten consecutive days.
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Should I Sell My FFIE Stock?
Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.
Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.
Shares of Faraday Future have lost 97.33% year to date. This compares to the average annual return of -93.57%, meaning the stock has underperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.
Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Faraday Future stock currently has an RSI of 99.76, indicating overbought conditions.
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FFIE Price Action: According to Benzinga Pro, Faraday Future Intelligent Energy shares are up 173.8% at $1.93 at the time of publication Wednesday.
Image: Courtesy of Faraday Future Intelligent Electric, Inc.